Retailing (Germany):
Worsened business situation and outlook

In retailing the present business situation was again assessed slightly more unfavourably than in the previous month. This is the result of a weakening in the non-food area, whereas in food and beverages some improvement was observed. The enterprises are also more sceptical with regard to future business although their order plans are not quite as restrictive as before despite increased inventory pressure. Prices increased again, and the responses show that this will also be the case in the coming months. Price hikes are still planned above all in the food and beverage sector, but in the case of consumer durables there is hardly any scope for upward price adjustments. The business situation in eastern German retailing deteriorated again. Clearly enhanced pessimism regarding the business outlook meant that the firms see no reason to loosen their restrictive order policies in the coming months despite reduced inventory pressure. The rise in prices continued at an accelerated rate, and also in the near future further noticeable increases are anticipated.